[November 11, 2004] CGI Holding Corporation Reports Record Third Quarter Results; Company Posts 25% Sequential Revenue Increase and 24% Sequential Pre-tax Earnings Increase LAKE BLUFF, Ill. --(Business Wire)-- Nov. 11, 2004 -- CGI Holding Corporation (OTCBB: CGIH) today announced its financial results for the three and nine months ended September 30, 2004. Revenues for the third quarter rose to $5,721,669, a 25% sequential quarterly increase, and an increase of 175% over the third quarter of 2003. The Company's earnings from continuing operations before taxes in the third quarter of 2004 were $1,454,120, an increase of 24% over the prior quarter, and an increase of 469% over the third quarter of 2003. The Company's earnings from continuing operations before taxes in the third quarter of 2004 were $0.05 per share, an increase of 17% over the prior quarter, and an increase of 336% over the third quarter of 2003. The Company's earnings from continuing operations in the third quarter of 2004 were $883,008, or $0.03 per diluted share, an increase of 12% over the 2004 second quarter, and an increase of 246% over the third quarter of 2003, when the Company had income from continuing operations of $255,428, or $0.01 per diluted share. For the nine months ended September 30, 2004, the Company's revenues rose to $14,121,105, a 221% increase over the prior year period, and earnings from continuing operations before taxes were $3,587,202, a 1,194% increase over the prior year period. The Company's earnings from continuing operations before taxes for the first nine months of 2004 were $0.13 per share, an increase of 862% over the prior year period, and earnings from continuing operations were $2,215,229, or $0.08 per diluted share, a 700% increase over the prior year period, when the Company had earnings from continuing operations of $227,126, or $0.01 per diluted share. "Our revenues and pre-tax earnings increased substantially during the third quarter, as a result of continued demand for our Internet marketing solutions," said Gerard M. Jacobs, the Company's CEO. "As search engine marketing increases, the demand for our Internet marketing services, which allow companies to maximize their investment in the services provided by Yahoo!, Google and many others, are expected to grow rapidly. Despite record results from our WebSourced division, our earnings per share were impacted due to several factors, including disruptions of our online dating operations in Florida caused by several hurricanes, and legal, accounting and other transaction costs incurred in connection with our acquisition of WebCapades and another potential pending acquisition." "We continue to expect our after-tax earnings from continuing operations to be in the range of $0.04 - $0.05 per share for the fourth quarter of 2004, and to be in the range of $0.20 - $0.25 per share for 2005. In addition, we anticipate that we will soon announce another potential acquisition which is not included in these estimates." Steven "Pat" Martin, the Company's Vice Chairman and CEO of the Company's WebSourced, Inc. subsidiary stated, "WebSourced's businesses are continuing to grow nicely. This quarter, we expect to have the benefit of a full three months of strong earnings from WebCapades, rather than just six weeks of hurricane-impacted results. We continue to be very optimistic about the future of our company." CGI Holding Corporation, based in Lake Bluff, Illinois (see www.cgiholding.com) currently has one subsidiary, Websourced, Inc., Morrisville, North Carolina, a leader in search engine optimization, pay-per-click campaign management, and online dating (see www.websourced.com, www.keywordranking.com and www.cherish.com). Statements made in this press release that express the Company's or management's intentions, plans, beliefs, expectations or predictions of future events, are forward-looking statements. The words "believe", "expect", "intend", "estimate", "anticipate", "will" and similar expressions are intended to further identify such forward-looking statements, although not all forward-looking statements contain these identifying words. Those statements are based on many assumptions and are subject to many known and unknown risks, uncertainties and other factors that could cause the Company's actual activities, results or performance to differ materially from those anticipated or projected in such forward-looking statements. Other factors that could cause the Company's actual activities, results or performance to differ materially include risks and uncertainties relating to: existing and potential litigation; historical losses; likely inability to collect all monies owed to us; acquisitions financing, terms, conditions, and ability to close; volatile stock price; integration of acquired businesses; managing growth; availability of skilled labor and key personnel; weak general economic and business conditions; competition; lack of long-term contracts; lack of brand awareness; client expectations; dependence upon the internet as a means for commerce; governmental regulation or taxation; inability to protect intellectual property; insider control; no dividends; Nevada laws that could discourage transactions involving the Company's stock; and other factors and risks discussed in the Company's filings with the Securities and Exchange Commission. The Company cannot guarantee future financial results, levels of activity, performance or achievements and investors should not place undue reliance on the Company's forward-looking statements. The forward-looking statements contained herein represent the judgment of the Company as of the date of this press release, and the Company expressly disclaims any intent, obligation or undertaking to update or revise such forward-looking statements to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. [ Back To TMCnet.com's Homepage ]